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The New Deal
Transcript of The New Deal
Roosevelt worked closely with
advisors "Brain Trust" to produce and enourmous range of sweeping measures. 3 goals:
a. Make changes to protect people.
Examples: Unemployment Insurances, old age pensions, help for sick,needy, and disabled 2. Recovery
a. Revive the economy by getting industry going and people working 1 Relief
a. Relieve Extreme Poverty, feed starving and stop people from losing homes Criticism Passed the National Industrial Recovery Act (NIRA)
Set up two agencies: Tennessee Valley Authority 100 Days Ends Bad Winter 1935= Still Problems Goal #3? Second New Deal Wagner Act (WA):
Helped improve wages and working conditions
Employers forced to work with Unions Social Security Act (SSA)
Unemployment Insurance Soil Conservation Act, Resettlement Administration (RA)- Helped displaced farmers find new land and homes Farm Security Adiminstration- gave loans to farmers to buy land and set up sepcial camps for migrant workers Credits:
Opposition The New Deal isn't doing Enough! The New Deal is Doing too Much! Number of High-Profile figures rasied the complaint that New Deal was not doing enough to help the poor, esp. very poor farmers and and African Americans. Socialism: If you own two cows you give one to your neighbour.
Communism: You give both cows to the government and the government gives you back some milk.
Fascism: You keep both cows, but the government takes your milk, and sells some of it back to you.
New Deal: You shoot both cows and milk the government.
Republican joke of the 1930s (c. 1935) Huey Long Father Coughlin Powerful Governor of Lousiana:
Believed New Deal should go Further
Began "Share Our Wealth" campaign
All fortunes reduced to $3 million
maximum income $1million annually
Government taxes would be shared between all Americans Used his power to help poor
Relentlessly Taxed Big Companies and used the money to build roads, schools, hospitals.
Employed African Americans on the same terms as white Americans
Fought the KKK
Proposed Old Age pensions for everyone over 60.
Free Washing Machines and Free Radios Catholic Priest with hugely successful radio programme (40 million listeners) Extremely critical of AAA, which he viewed as criminally wasteful some of the tactics used to limit overproduction: plowing under crops or slaughtering livestock Attacked the "slow pace" of the New Deal. Didn't believe it was helping enough people fast enough. Businessmen hated the New Deal because:
1. It interfered with their businesses
2. Supported workers’ rights and unions
3. Created unfair competition (TVA) Republicans hated the New Deal because:
1. The Expense: they said was wasteful (‘boondoggling’ – jobs for the sake of jobs). CWA had to be abolished in 1935, though immediately replaced by the PWA.
2. Economic Plans too similar to those being carried out in communist USSR- Unsuitable for Free-market, USA. After 1938, Republicans took over the Senate, and Roosevelt was unable to get any more New Deal legislation through. State governments hated the New Deal because:
1. Opposed the Federal government was taking their powers.
FDR was acting like a dictator The Supreme Court hated the New Deal because:
1. It was controlled by Republicans and the only branch capable of fighting FDR's power at the time. in 1935 they ruled that the NRA codes of employers’ conduct, and the AAA programme, were illegal because they took away the States’ powers. Because of this, in 1937, Roosevelt threatened to force old Supreme Court judges to retire and to create new ones; the crisis was averted when the Supreme Court reversed its decisions.
National Housing Act (1937):
● Provided loans to buy houses
● Reduced excessive rents.
To replace the banned NRA. replaced the banned AAA- Allowed government to keep subsidising farmers. Created two New Agencies Fair Labour Standards Act (1938):
● Set hours and conditions of work
● Fixed a minimum wage. How successful were the New Deals?